Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 28, 2013

Schedule of Condensed Balance Sheet

	September 28, 2013
	Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
	(Unaudited; in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	210.8		$	0.1	$	673.1	$	—		$	884.0
Accounts receivable		60.5			488.7		2,047.7		—			2,596.9
Inventories		5.6			285.2		548.4		—			839.2
Other		133.9			69.6		480.0		—			683.5
Total current assets		410.8			843.6		3,749.2		—			5,003.6
LONG-TERM ASSETS:
Property, plant and equipment, net		94.7			309.7		1,135.6		—			1,540.0
Goodwill		23.5			401.0		328.6		—			753.1
Investments in subsidiaries		1,652.4			1,291.7		—		(2,944.1	)		—
Other		726.2			75.1		366.2		—			1,167.5
Total long-term assets		2,496.8			2,077.5		1,830.4		(2,944.1	)		3,460.6
Total assets	$	2,907.6		$	2,921.1	$	5,579.6	$	(2,944.1	)	$	8,464.2
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	110.4		$	652.3	$	1,792.2	$	—		$	2,554.9
Accrued liabilities		104.7			157.1		932.9		—			1,194.7
Total current liabilities		215.1			809.4		2,725.1		—			3,749.6
LONG-TERM LIABILITIES:
Long-term debt		1,057.0			—		—		—			1,057.0
Intercompany accounts, net		(1,367.0	)		467.5		899.5		—			—
Other		189.0			240.4		308.2		—			737.6
Total long-term liabilities		(121.0	)		707.9		1,207.7		—			1,794.6
EQUITY:
Lear Corporation stockholders’ equity		2,813.5			1,403.8		1,540.3		(2,944.1	)		2,813.5
Noncontrolling interests		—			—		106.5		—			106.5
Equity		2,813.5			1,403.8		1,646.8		(2,944.1	)		2,920.0
Total liabilities and equity	$	2,907.6		$	2,921.1	$	5,579.6	$	(2,944.1	)	$	8,464.2

	December 31, 2012
	Lear			Guarantors		Non- guarantors		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	481.4		$	0.1	$	920.7	$	—		$	1,402.2
Accounts receivable		47.7			358.4		1,634.6		—			2,040.7
Inventories		5.2			264.3		457.6		—			727.1
Other		162.9			70.2		470.4		—			703.5
Total current assets		697.2			693.0		3,483.3		—			4,873.5
LONG-TERM ASSETS:
Property, plant and equipment, net		91.5			273.3		1,038.3		—			1,403.1
Goodwill		23.5			400.8		322.2		—			746.5
Investments in subsidiaries		1,494.7			1,287.8		—		(2,782.5	)		—
Other		769.9			67.5		333.6		—			1,171.0
Total long-term assets		2,379.6			2,029.4		1,694.1		(2,782.5	)		3,320.6
Total assets	$	3,076.8		$	2,722.4	$	5,177.4	$	(2,782.5	)	$	8,194.1
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and drafts	$	114.3		$	555.2	$	1,563.5	$	—		$	2,233.0
Accrued liabilities		124.7			192.8		666.4		—			983.9
Total current liabilities		239.0			748.0		2,229.9		—			3,216.9
LONG-TERM LIABILITIES:
Long-term debt		626.3			—		—		—			626.3
Intercompany accounts, net		(1,471.3	)		447.6		1,023.7		—			—
Other		195.7			179.5		363.5		—			738.7
Total long-term liabilities		(649.3	)		627.1		1,387.2		—			1,365.0
EQUITY:
Lear Corporation stockholders’ equity		3,487.1			1,347.3		1,435.2		(2,782.5	)		3,487.1
Noncontrolling interests		—			—		125.1		—			125.1
Equity		3,487.1			1,347.3		1,560.3		(2,782.5	)		3,612.2
Total liabilities and equity	$	3,076.8		$	2,722.4	$	5,177.4	$	(2,782.5	)	$	8,194.1

Schedule of Condensed Income Statement

	For the Three Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	105.2		$	1,557.8		$	3,351.6		$	(1,096.9	)	$	3,917.7
Cost of sales		132.6			1,411.2			3,140.6			(1,096.9	)		3,587.5
Selling, general and administrative expenses		43.0			17.3			68.3			—			128.6
Amortization of intangible assets		0.5			1.2			6.9			—			8.6
Intercompany charges		0.2			—			(0.2	)		—			—
Interest expense		11.9			6.0			(0.4	)		—			17.5
Other intercompany (income) expense, net		(45.7	)		33.6			12.1			—			—
Other expense, net		0.6			0.2			16.0			—			16.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(37.9	)		88.3			108.3			—			158.7
Provision for income taxes		(11.2	)		31.7			30.7			—			51.2
Equity in net income of affiliates		(0.1	)		(0.3	)		(8.8	)		—			(9.2	)
Equity in net income of subsidiaries		(139.4	)		(39.1	)		—			178.5			—
Consolidated net income		112.8			96.0			86.4			(178.5	)		116.7
Less: Net income attributable to noncontrolling interests		—			—			3.9			—			3.9
Net income attributable to Lear	$	112.8		$	96.0		$	82.5		$	(178.5	)	$	112.8
Consolidated comprehensive income	$	144.2		$	91.0		$	122.8		$	(209.7	)	$	148.3
Less: Comprehensive income attributable to noncontrolling interests		—			—			4.1			—			4.1
Comprehensive income attributable to Lear	$	144.2		$	91.0		$	118.7		$	(209.7	)	$	144.2
	For the Three Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	119.1		$	1,431.4		$	2,992.7		$	(1,004.6	)	$	3,538.6
Cost of sales		126.6			1,282.8			2,842.5			(1,004.6	)		3,247.3
Selling, general and administrative expenses		35.9			43.7			33.8			—			113.4
Amortization of intangible assets		0.4			1.4			6.5			—			8.3
Intercompany charges		0.5			0.3			(0.8	)		—			—
Interest expense		0.8			4.1			8.8			—			13.7
Other intercompany (income) expense, net		(67.5	)		45.1			22.4			—			—
Other expense, net		3.5			0.1			(2.1	)		—			1.5
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		18.9			53.9			81.6			—			154.4
Provision for income taxes		2.5			(1.3	)		28.1			—			29.3
Equity in net income of affiliates		4.5			(0.6	)		(6.9	)		—			(3.0	)
Equity in net income of subsidiaries		(109.5	)		(24.0	)		—			133.5			—
Consolidated net income		121.4			79.8			60.4			(133.5	)		128.1
Less: Net income attributable to noncontrolling interests		—			—			6.7			—			6.7
Net income attributable to Lear	$	121.4		$	79.8		$	53.7		$	(133.5	)	$	121.4
Consolidated comprehensive income	$	166.4		$	104.8		$	91.9		$	(188.8	)	$	174.3
Less: Comprehensive income attributable to noncontrolling interests		—			—			7.9			—			7.9
Comprehensive income attributable to Lear	$	166.4		$	104.8		$	84.0		$	(188.8	)	$	166.4

	For the Nine Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	352.4		$	4,701.3		$	10,326.7		$	(3,402.5	)	$	11,977.9
Cost of sales		429.9			4,277.4			9,692.8			(3,402.5	)		10,997.6
Selling, general and administrative expenses		121.7			49.2			215.2			—			386.1
Amortization of intangible assets		1.3			3.6			20.9			—			25.8
Intercompany charges		0.9			0.3			(1.2	)		—			—
Interest expense		36.0			18.1			(2.5	)		—			51.6
Other intercompany (income) expense, net		(170.8	)		97.7			73.1			—			—
Other expense, net		6.8			1.0			30.0			—			37.8
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		(73.4	)		254.0			298.4			—			479.0
Provision for income taxes		(23.6	)		92.3			61.5			—			130.2
Equity in net income of affiliates		(0.8	)		(0.4	)		(25.9	)		—			(27.1	)
Equity in net income of subsidiaries		(407.6	)		(120.3	)		—			527.9			—
Consolidated net income		358.6			282.4			262.8			(527.9	)		375.9
Less: Net income attributable to noncontrolling interests		—			—			17.3			—			17.3
Net income attributable to Lear	$	358.6		$	282.4		$	245.5		$	(527.9	)	$	358.6
Consolidated comprehensive income	$	338.5		$	270.4		$	254.7		$	(506.9	)	$	356.7
Less: Comprehensive income attributable to noncontrolling interests		—			—			18.2			—			18.2
Comprehensive income attributable to Lear	$	338.5		$	270.4		$	236.5		$	(506.9	)	$	338.5
	For the Nine Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations			Consolidated
	(Unaudited; in millions)
Net sales	$	379.9		$	4,320.2		$	9,340.6		$	(3,193.1	)	$	10,847.6
Cost of sales		423.9			3,931.2			8,769.9			(3,193.1	)		9,931.9
Selling, general and administrative expenses		108.8			68.5			169.5			—			346.8
Amortization of intangible assets		1.2			1.9			19.4			—			22.5
Intercompany charges		3.6			1.3			(4.9	)		—			—
Interest expense		3.0			15.9			21.3			—			40.2
Other intercompany (income) expense, net		(255.3	)		168.9			86.4			—			—
Other expense, net		2.4			0.6			9.0			—			12.0
Consolidated income before income taxes and equity in net income of affiliates and subsidiaries		92.3			131.9			270.0			—			494.2
Provision for income taxes		8.4			0.2			91.8			—			100.4
Equity in net income of affiliates		(13.1	)		(2.0	)		(18.2	)		—			(33.3	)
Equity in net income of subsidiaries		(303.9	)		(129.8	)		—			433.7			—
Consolidated net income		400.9			263.5			196.4			(433.7	)		427.1
Less: Net income attributable to noncontrolling interests		—			—			26.2			—			26.2
Net income attributable to Lear	$	400.9		$	263.5		$	170.2		$	(433.7	)	$	400.9
Consolidated comprehensive income	$	434.6		$	324.6		$	186.7		$	(484.8	)	$	461.1
Less: Comprehensive income attributable to noncontrolling interests		—			—			26.5			—			26.5
Comprehensive income attributable to Lear	$	434.6		$	324.6		$	160.2		$	(484.8	)	$	434.6

Schedule of Condensed Cash Flow Statement

	For the Nine Months Ended September 28, 2013
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	0.8		$	161.6		$	267.2		$	—	$	429.6
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(13.4	)		(83.7	)		(232.1	)		—		(329.2	)
Insurance proceeds		—			—			7.1			—		7.1
Other, net		44.1			0.1			(3.5	)		—		40.7
Net cash used in investing activities		30.7			(83.6	)		(228.5	)		—		(281.4	)
Cash Flows from Financing Activities:
Proceeds from the issuance of senior notes		500.0			—			—			—		500.0
Repurchase of senior notes		(72.1	)		—			—			—		(72.1	)
Payment of debt issuance and other financing costs		(13.4	)		—			—			—		(13.4	)
Repurchase of common stock		(1,000.1	)		—			—			—		(1,000.1	)
Dividends paid to Lear Corporation stockholders		(44.8	)		—			—			—		(44.8	)
Dividends paid to noncontrolling interests		—			—			(33.4	)		—		(33.4	)
Other		(6.3	)		—			(3.4	)		—		(9.7	)
Change in intercompany accounts		334.6			(78.0	)		(256.6	)		—		—
Net cash used in financing activities		(302.1	)		(78.0	)		(293.4	)		—		(673.5	)
Effect of foreign currency translation		—			—			7.1			—		7.1
Net Change in Cash and Cash Equivalents		(270.6	)		—			(247.6	)		—		(518.2	)
Cash and Cash Equivalents as of Beginning of Period		481.4			0.1			920.7			—		1,402.2
Cash and Cash Equivalents as of End of Period	$	210.8		$	0.1		$	673.1		$	—	$	884.0
	For the Nine Months Ended September 29, 2012
	Lear			Guarantors			Non- guarantors			Eliminations		Consolidated
	(Unaudited; in millions)
Net cash provided by operating activities	$	70.1		$	250.1		$	40.5		$	—	$	360.7
Cash Flows from Investing Activities:
Additions to property, plant and equipment		(7.7	)		(75.2	)		(217.6	)		—		(300.5	)
Insurance proceeds		—			—			11.4			—		11.4
Cash paid for acquisitions, net of cash acquired		(243.9	)		—			—			—		(243.9	)
Other, net		(2.1	)		3.8			(4.8	)		—		(3.1	)
Net cash used in investing activities		(253.7	)		(71.4	)		(211.0	)		—		(536.1	)
Cash Flows from Financing Activities:
Repurchase of senior notes		(72.1	)		—			—			—		(72.1	)
Repurchase of common stock		(172.6	)		—			—			—		(172.6	)
Dividends paid to Lear Corporation stockholders		(40.9	)		—			—			—		(40.9	)
Dividends paid to noncontrolling interests		—			—			(4.3	)		—		(4.3	)
Other		2.2			—			(17.6	)		—		(15.4	)
Change in intercompany accounts		48.8			(178.2	)		129.4			—		—
Net cash used in financing activities		(234.6	)		(178.2	)		107.5			—		(305.3	)
Effect of foreign currency translation		—			—			(4.0	)		—		(4.0	)
Net Change in Cash and Cash Equivalents		(418.2	)		0.5			(67.0	)		—		(484.7	)
Cash and Cash Equivalents as of Beginning of Period		820.3			0.1			933.9			—		1,754.3
Cash and Cash Equivalents as of End of Period	$	402.1		$	0.6		$	866.9		$	—	$	1,269.6

Long-Term Debt of Lear and Guarantors

Long-Term Debt of Lear and the Guarantors — A summary of long-term debt of Lear and the Guarantors on a combined basis is shown below (in millions):

	September 28, 2013		December 31, 2012
Senior notes	$	1,057.0	$	626.3